Enjin Coin remained under pressure on Thursday after another failed attempt to establish support above the $0.06 level.

The token traded around $0.0564 at the time of writing, down 4.7% over the past 24 hours, with intraday trading fluctuating between $0.05496 and $0.05932.

Notably, the current decline comes after ENJ posted one of its strongest monthly recoveries in recent years.

Despite the decline, the token is still up 175.4% over the past 30 days.

However, traders appear to be taking profits after the rally stalled.

ENJ entered April with strong upside momentum after rebounding sharply from its March low of $0.0174.

The token later climbed toward the $0.07 region as speculative activity increased across the gaming and metaverse token sector.

That rally has since melted, and the derivatives positioning points to growing bearish sentiment among short-term traders.

Market data shows the long-to-short ratio falling to around 0.77, meaning bearish positions are outnumbering bullish ones.

At the same time, momentum indicators have begun to weaken after the earlier breakout attempt failed.

The Relative Strength Index (RSI-14) currently sits at 55.45. That level does not indicate oversold or overbought conditions, but it also shows that the strong buying momentum seen earlier in April has cooled.

While short-term momentum has weakened, ENJ still holds above several important moving averages on the daily chart.

The token currently trades above its 20-day, 50-day, 100-day, and 200-day exponential moving averages.

Only the 10-day EMA remains above the current price, acting as immediate resistance.

Holding above the 200-day EMA is especially important because many traders use that level to measure the broader market trend.

As long as ENJ remains above that long-term indicator, the wider bullish structure remains intact despite recent volatility.

Historical cycle data also continues to attract attention from long-term investors.

Enjin Coin reached its first major all-time high in January 2018 at $0.4934 before dropping to $0.0230 later that year.

The project eventually entered another major bull cycle that peaked in November 2021, when ENJ reached its record high of $4.82.

Past market cycles show that ENJ previously took about four years to move from one all-time high to the next.

And more than 1,600 days have now passed since the 2021 peak, placing the token within the historical timeframe that traders often associate with a possible new macro cycle.

However, the current market structure remains far weaker than the conditions seen during the 2021 rally.

From a trader’s perspective, the first important resistance level sits at $0.0859.

While longer-term models remain more optimistic despite the recent correction, short-term projections suggest ENJ could drop to around $0.0543 if the current weakness continues.

Analysts tracking ENJ’s trend structure say the token needs a confirmed close above that level to regain stronger bullish momentum.

A successful breakout there could open the door for a move toward the next resistance zone at $0.0983.

On the downside, support is currently located around $0.0529.

That level has become critical after the recent pullback from April highs.

If ENJ falls below $0.0529, selling pressure could increase and expose the token to deeper losses.

The post Enjin Coin fails to break past $0.06: why is ENJ price falling? appeared first on Invezz

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